Question: How do I solve this P12AB-38A Determining the present value of bonds payable and journalizing using the effective-interest amortization method Learning Appendix Relaxation, Inc. is
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P12AB-38A Determining the present value of bonds payable and journalizing using the effective-interest amortization method Learning Appendix Relaxation, Inc. is authorized to issue 7%, 10-year bonds payable. On January 1, 2018, when the market interest rate is 12%, the company issues $300,000 of the bonds. The bonds pay interest semiannually Requirements 1. How much cash did the company receive upon issuance of the bonds payable? 3. Jan. 1, 2 Round to the nearest dollar.) through the first two interest payments. (Round to the nearest dollar.) payments of the semiannual interest amount and amortization of the bonds on 2. Prepare an amortization table for the bond using the effective-interest method 3. Journalize the issuance of the bonds on January 1, 2018, and the first and second June 30, 2018, and December 31, 2018. Explanations are not required. > Problems Group B P12-39B Journalizing liability transactions and reporting them on the balance sheet The following transactions of Great Value Pharmacies occurred during 2018 and 2019: Learnin 2. Total L 2018 Mar. 1 Borrowed $390,000 from Bartow Bank. The six-year, 13% note requires payments due annually, on March 1. Each payment consists of $65,000 principal plus one year's interest Dec. 1 Mortgaged the warehouse for $350,000 cash with Saylor Bank. The mortgage requires monthly payments of $7,000. The interest rate on the note is 9% and accrues monthly. The first payment is due on January 1, 2019. Recorded interest accrued on the Saylor Bank note. Recorded interest accrued on the Bartow Bank note. 31 31 2019 Jan. 1 Paid Saylor Bank monthly mor.gage payment. Feb. 1 Paid Saylor Bank monthly morigisge pavment. Mar. 1 Paid Saylor Bank monthly mortage payment. 1 Paid first installment on note due to Bartow Bank. Requirements 1. Journalize the transactions in the Great Value Pharmacies general journal. Round to the nearest dollar. Explanations are not required. 2. Prepare the liabilities section of the balance sheet for Great Value Pharmacies on March 1, 2019 after all the journal entries are recordedStep by Step Solution
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